Am I Ready to Invest in a Home
The answer to this should be arrived at after considering the following variables:
- Do you have a steady source of income from your business or your job? Do you have a steady job for atleast the last 3 years? Is your current employer a steady profitable business or are you working with a startup or a company with a shaky future?
- Do you have a good record of paying your bills and past loans? In short do you have a good credit record?
- Do you have money saved for making a down payment?
- Do you have other expensive outstanding loan repayments and debts?
- Do you have the ability to pay a substantial amount in EMI every month plus other costs?
- If your answer was yes to the above questions then you are ready to buy an upscale property!
How Does the Finance Company Decide My Maximum Loan Amount
The Bank or lending institution will consider your debt-to-income ration which is basically a comparison of your pre-taxable income with housing and non-housing expenses. Non housing expenses will include long term ongoing debts such as car or other legal debts such alimony or child support. The lender will also consider your ability to pay cash for down payment and closing costs, your Credit Score etc. which will all go towards determining the maximum loan amount that can be made available to you.
What Should I Look For When Selecting a Home
Apart from comparing the homes that you are in the process of shortlisting with your ideal minimum criteria and wish lists, you should also consider the following check points:
- Is there enough room for the present and the future as your family grows?
- Are there enough bedrooms and bathrooms?
- Is the home pleasant, airy and has ample natural light?
- Do the pre-installed mechanical and electronics systems and appliances work?
- Do you like the floor plan?
- Will your furniture fit in the space? Is there enough storage space for all your needs?
- Imagine the home in day and night, in good and bad weather. Will you feel happy and secure inside round the year?
- Are the property related legal documents clean and clear?
- Have you done due diligence on the property?
- Carefully consider each and every home that you inspect and ask your real estate agent to highlight the pros and cons of each home from a professional and legal standpoint.
What is Home Inspection
Professional Home Inspection is a relatively recent concept in India and Gupta & Sen also provides professional home inspectors to our clients once they shortlist a home that they want to buy. A home inspector basically checks the safety parameters of the house focusing especially on the structure, construction and mechanical and electronic systems of the house and will make you aware of repairs needed for faulty installation or construction. The inspector will not evaluate whether or not you are getting a fair value on the house. The inspector only checks and will give an estimate on the repairing cost involved for:
- The Electrical system
- Plumbing & Waste Disposal
- Water Heater
- Insulation & Ventilation
- Water source & quality
- Potential Pest Problem
- The Foundation
- Doors, Windows, Ceilings, Walls, Floors & Roof
- Hi Tech Security Systems, Home Automation Systems Promised by The Developer (if any)
Remember that is a good idea to have a thorough inspection of the house that you intend to buy before you sign on the offer documents because once the deal is closed you have bought the house ‘as is’. If you are in a hurry, you must include an ‘inspection’ clause in the offer during the negotiation phase. An inspection clause will give you an ‘exit’ route if it is discovered after buying the house that the developer or previous owner has reneged on the promises made before buying. The clause will give you the crucial ability to renegotiate the purchase price if serious problems are found which require expensive repairs. An inspection clause can also specify that the seller or developer must fix the problem(s) before you buy the house. Though not mandatory, as the future owner of the house you should be present when during the inspection of the house in order to be better informed about everything and to confirm the discrepancies found if any.
How Should I Make an Offer
Once you have zoned in on a particular home and decided that this it, our real estate agent will help you in making an offer to the Developer / Seller which will include the following information:
- Complete Legal description of the property
- Amount of Earnest Money to be deposited
- Down Payment and financing details
- Proposed Moving-in Date
- Price you are offering
- Proposed Closing Date
- Duration of Time the offer is valid
- Details of the Deal
Do remember that a successful sale depends on the negotiation of a satisfactory contract with the seller and is not wholly dependent on only your own offer.
What Is Earnest Money
Earnest Money is the money that is put down to show your seriousness about buying a home. It must be large enough to indicate good faith and usually hovers around 1 – 5 % of the purchase price. If your offer is accepted by the seller, then the earnest money becomes part of your downpayment or closing costs. If the offer is rejected then the money is returned to you. If you back out of a deal, you will have to forfeit the entire amount.
How Much Commission Do You Charge
The following are our terms and conditions for commission or brokerage fees:
a) Where we act on behalf of both the Buyer and the Seller, commission at the rate of 2 % shall be paid to us by each party.
b) Where we act only for the buyer or the seller, commission @ 2% shall be paid by the party for whom the member acts.
Before we start showing you homes, our real estate agent will discuss our terms and conditions with you and only if you are comfortable with our terms shall we proceed with the showing of properties.
The commission will have to be paid to us at the time of execution of the:
- Deed of Transfer or
- Agreement for sale or
- Completion of the transaction or
- Possession of the said property
Is it permissible to sell parking to allottees?
The position of parking is as follows:
a) Open Parking Area: This has been clearly included in the definition of “Common Areas” which need to be conveyed to the Association of Allottees after Occupancy Certificate is received. Hence, sale or allotment of Open Parking Areas by the Promoter is not permissible
b) Covered Parking as defined in the Maharashtra Real Estate (Regulation and Development)(Registration of Real Estate Projects, Registration of Real Estate Agents, Rates of Interest and Disclosures on Website) Rules, 2017 is permitted to be sold.
Is the promoter required to give any undertaking to MahaRERA for completing his project within a specified period?
Yes, in accordance with the provisions of the Act, the promoter, while applying for registration to MahaRERA, has to give a declaration, supported by an affidavit, indicating the time period within which he undertakes to complete the project or phase thereof, as the case may be.
In case of delay in getting possession from the promoter, will the buyer be entitled to get interest on the amount paid by him, for such delayed period?
Yes. In accordance with the model form of agreement, if the Promoter fails to abide by the time schedule for completing the project and handing over the [Apartment/Plot] to the Allottee, the Promoter agrees to pay to the Allottee, who does not intend to withdraw from the project, interest as specified in the Rule, on all the amounts paid by the Allottee, for every month of delay, till the handing over of the possession.
Sometimes buyer is ready and gives undertaking that he is ok to give money beyond 10% however does not want to register. Should it be allowed?
No. Section 13(1) of the Act prohibits the promoter from taking more than 10% of the cost of apartment without entering into a written agreement for sale, duly registered.